Fed finalizes guidelines for granting firms access to payment services

BY Reuters | ECONOMIC | 08/15/22 02:30 PM EDT

WASHINGTON, Aug 15 (Reuters) - The U.S. Federal Reserve announced on Monday it had finalized guidelines for how it would review requests by banks, fintechs and other firms to access the central bank's master accounts and payment systems.

The final product is substantially similar to earlier proposals the Fed floated in May 2021 and March, and would create a tiered review system that reserves the closest scrutiny to companies that lack federal deposit insurance and are not traditionally overseen by bank regulators. (Reporting by Pete Schroeder Editing by Chris Reese)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.